Method and Apparatus Pertaining to Facilitating Administration of a Fixed Annuity Having a Long-Term Care Rider

Abstract

Administering a fixed annuity having a long-term care (LTC) rider includes calculating, at a time of an insured party entering a claim period for LTC benefits and as a function of a value of a fixed annuity for an annuitant, an available insurance amount for an LTC benefit. This fixed-annuity value can comprise a present value of the fixed annuity at the time the insured party enters the claim period. These teachings will also accommodate calculating the total LTC benefits by summing the value of the fixed annuity with the value of the fixed annuity as multiplied by a multiplier. LTC benefits can be paid by apportioning a first part of the payment against the fixed annuity itself while apportioning a second part of the payment against an available insurance amount. Following depletion of the annuity, however, one can then apportion such payments only against the available insurance amount until exhausted.

1 . An apparatus to facilitate administering a fixed annuity having a long-term care rider, the apparatus comprising:
 a memory having stored therein, for an annuitant:
 a value of a fixed annuity; 
   a control circuit operably coupled to the memory and configured to:
 calculate, at a time of an insured party entering a claim period for long-term care benefits and as a function of the value of the fixed annuity, a long-term care benefit. 
   
     
     
         2 . The apparatus of  claim 1  wherein the value of the fixed annuity comprises a present value of the fixed annuity when the insured party enters the claim period for the long-term care benefits. 
     
     
         3 . The apparatus of  claim 1  wherein the memory further stores a multiplier and wherein calculating total benefits available for covered long-term care expenses comprises summing the value of the fixed annuity with the value of the fixed annuity as multiplied by the multiplier. 
     
     
         4 . The apparatus of  claim 1  wherein calculating the long-term care benefit further comprises calculating a corresponding maximum daily long-term care benefit. 
     
     
         5 . The apparatus of  claim 1  wherein the control circuit is further configured to:
 administer payment of long-term care benefits by apportioning a first part of the payment against the fixed annuity and a second part of the payment against an available insurance amount. 
 
     
     
         6 . The apparatus of  claim 5  wherein the control circuit is further configured to:
 administer payment of long-term care benefits by apportioning the payment only against the available insurance amount when the fixed annuity is depleted. 
 
     
     
         7 . The apparatus of  claim 6  wherein the first part of the payment comprises an amount in excess of fifty percent of the payment and the second part of the payment comprises an amount less than fifty percent of the payment. 
     
     
         8 . The apparatus of  claim 1  wherein the control circuit is further configured to:
 calculate the long-term care benefit by using a guaranteed portion when the value of the fixed annuity is less than a predetermined amount as a result of prior insurance costs having been assessed against the fixed annuity. 
 
     
     
         9 . The apparatus of  claim 1  wherein the fixed annuity corresponds to two insureds, and wherein the control circuit is configured to:
 calculate, at a time of either of the two insureds entering a claim period for long-term care benefits and as a function of the value of the fixed annuity, an available insurance amount for long-term care benefits that applies to both of the two insureds. 
 
     
     
         10 . The apparatus of  claim 1  wherein the value of the fixed annuity can be less than an initially-funded value of the fixed annuity as a result of at least one of:
 insurance costs; 
 long-term care benefit payments; 
 a surrender; 
 a surrender charge. 
 
     
     
         11 . A method to facilitate administering a fixed annuity having a long-term care rider, the method comprising:
 by a control circuit:
 calculating, at a time of an insured party entering a claim period for long-term care benefits and as a function of a value of a fixed annuity for an annuitant, an available insurance amount for a long-term care benefit. 
   
     
     
         12 . The method of  claim 11  wherein the value of the fixed annuity comprises a present value of the fixed annuity when the insured party enters a claim period for the long-term care benefits. 
     
     
         13 . The method of  claim 11  wherein calculating the total benefits available for covered long-term care expenses comprises summing the value of the fixed annuity with the value of the fixed annuity as multiplied by a multiplier. 
     
     
         14 . The method of  claim 11  wherein calculating the available insurance amount for long-term care benefit further comprises calculating a corresponding maximum daily long-term care benefit. 
     
     
         15 . The method of  claim 11  further comprising:
 administering payment of long-term care benefits by apportioning a first part of the payment against the fixed annuity and a second part of the payment against an available insurance benefit. 
 
     
     
         16 . The method of  claim 15  further comprising:
 administering payment of long-term care benefits by apportioning the payment only against the available insurance amount when the fixed annuity is depleted. 
 
     
     
         17 . The method of  claim 15  wherein the first part of the benefit payment comprises an amount in excess of fifty percent of the benefit payment and the second part of the benefit payment comprises an amount less than fifty percent of the benefit payment. 
     
     
         18 . The method of  claim 11  further comprising:
 calculating the long-term care benefit by using a guaranteed portion when the value of the fixed annuity is less than a predetermined amount as a result of prior insurance costs having been assessed against the fixed annuity. 
 
     
     
         19 . The method of  claim 11  wherein the fixed annuity corresponds to two insureds, and wherein calculating the available insurance amount for long-term care benefits comprise, at a time of either of the two insureds entering a claim period for long-term care benefits and as a function of the value of the fixed annuity, calculating an available insurance amount for long-term care benefit that applies to both of the two insureds. 
     
     
         20 . The method of  claim 11  wherein the value of the fixed annuity can be less than an initially-funded value of the fixed annuity as a result of at least one of:
 insurance costs; 
 long-term care benefit payments; 
 a surrender amount; 
 a surrender charge.